To Hold Annual General Meetings (AGM) Mandatory For Housing Societies in Mumbai

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An Annual General Meeting (AGM) is a means of communication between the members of a society and the managing committee. It is the most important event for every co-operative housing society. According to Bye-Law No. 95 of the Model Byelaws for Co-operative Housing Societies, the AGM should be held on or before 14th August each year or within the extended period as provided under Section 75 (f) of the Act.
“At the time of the AGM, members who are electing the managing committee have a right to know how the society is functioning and how their funds are being spent,” says Advocate Vinod Sampat. During the AGM, every member of the society will be explained as to how the society is working, the various tasks that it has undertaken and the status of each of them. The meeting will also touch upon financial transactions done by the managing committee.
According to Bye-Law No. 96, the AGM of a society will include reading the minutes of the last AGM of the society and any other special general body meetings held and talk about the action taken thereon. The managing committee should also submit reports on the preceding co-operative year’s working together with the statement of accounts in form ‘N’ prescribed under Rule 62(1) of the rules, showing the income and expenditure during the preceding co-operative year and the balance sheet as at the close of the preceding co-operative year.
The Navkunj Co-operative Housing Society Ltd in Nerul held its AGM on 1 July 2012. B. Ramamirtham, Chairman of Navkunj Co-operative Housing Society Ltd, says, “An AGM is a platform where the works of the managing committee for the society are sort of ratified by the members. It is a medium where the managing committee proposes the action plan for the next year, obtains approval for certain jobs to be done in the society after presenting their details with financial implications and takes financial approval wherever required as per rules.”
He adds that in the AGM held last week, the managing committee proposed implementing a CCTV system in the society campus. This was done by projecting the advantages of the same over the existing arrangement, financial costs attached to the project highlighting the commensurate advantage. The same practice was followed during proposal of lift upgradation and both the proposals got approved by the members of the society.
The notice for the AGM should be issued 15 days in advance with an agenda for the meeting. There are two clear agendas to be fulfilled in an AGM. Firstly, passing the accounts statement for the year and secondly appointing an auditor for the next year. If there is no quorum, the meeting can be adjourned for half an hour. After half an hour the meeting can be conducted irrespective of the quorum. All the proposals presented in the AGM for discussion should have been discussed and cleared in the managing committee meeting and minuted. The draft minutes of the meeting will be finalised by the managing committee within three months of the date of the meeting and circulated to the members within 15 days from the date of finalisation. Members can bring to the notice of the secretary within 15 days any omission and commission. The managing committee may consider these points in the next meeting and suitably modify and issue the MoM. This will be ratified in the following AGM. Copies of the notice for the AGM and MoM of AGM should be sent to the Registrar, Coop HS.
“It’s mandatory for housing societies to hold an AGM every year, failure of which can invite not only dismissal of the committee but also disqualification. There is no room under the law to say that we are doing Honorary Work, we were busy so we could not call the AGM, some of the MC members were out of town etc.,” says J B Patel, Housing Society Activist. If the AGM is not held on or before 14 August or before 14 November, with prior written permission from the Deputy/ Assistant Registrar, then there is a penalty.
Source- TOI

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